As already published in our Tax News, dated 13 July 2020, tax deferrals granted after 15 March 2020 and for which the deferral period ends on 30 September 2020 or 1 October 2020 are “automatically” deferred until 15 January 2021 (Section 323c para 11 Austrian Fiscal Code).
If, instead of the automatic deferral, payment by instalments over a longer period of time is preferred, an application for payment by 12 monthly instalments can be submitted by 30 September 2020 at the latest. If the conditions are met (tax deferral granted after 15 March 2020 and application submitted before 1 October 2020), the taxpayer has a statutory right that the requested instalment payment is granted. Although the taxpayer is free to determine the amount of the instalments, the payments need to be appropriate in relation to the taxpayer’s economic situation. In case the immediate and full payment of the remaining tax amount affects the taxpayer with considerable hardship, the tax office must grant the instalment payment for another six months upon request. Consequently, a total instalment payment period of 18 months from 30 September 2020 onwards may be obtained.
Instalment payment can only be considered as an alternative to an automatic deferral. The Austrian Fiscal Code does not provide the legal right to claim an installment payment over 12 months (plus possibly another six months) following the end of the “automatic deferral period” (15 January 2021) in order to use both options cumulatively. Affected taxpayers have to choose between these two options.
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